Semiconductor Fabs

The Scheme for setting up of Semiconductor Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to the approved applicants. The scheme shall be appraised by the Expenditure Finance Committee chaired by Secretary, Department of Expenditure. The Expenditure Finance Committee shall determine the structure and quantum of fiscal support under the scheme for establishing the semiconductor fabs.

Semiconductor Fabs

  • Electronics permeates all sectors of the economy and the electronics industry has cross-cutting economic and strategic importance. Currently valued at around USD 2 Trillion (₹150 lakh crore), the global electronics market is expected to grow significantly given the increasing penetration of emerging technologies including 5G, IoT, Artificial Intelligence, Robotics, Smart Mobility, Smart Manufacturing, etc.
  • Semiconductors are building blocks of electronic devices. Semiconductors are used to power a vast array of electronic devices ranging from smartphones and cloud servers to modern cars, industrial automation, critical infrastructure and defence system.
  • The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) and create an enabling environment for the industry to compete globally. One of the main strategies of NPE 2019 is to facilitate setting up of semiconductor wafer fabrication facilities and its eco-system for design and fabrication of chip components.
  • In case of fiscal support being provided as equity either in part or in full, Government of India’s share will not exceed 49% of total project equity.
  • The structure and quantum of the fiscal support will be negotiated by the India Semiconductor Mission with the applicants who are selected on the basis of technological and financial evaluation of their proposals.
  • Additional financial support, if any, offered by the State Government or any of its agencies or local bodies may also be availed.
  • Expenditure Finance Committee shall determine the structure and quantum of fiscal support to be provided under the scheme in consultation with Ministry of Electronics and Information Technology and the Nodal Agency.

Scheme Details

Objective Icon

Objective

To attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.

Eligibility Icon

Eligibility

Companies / Consortia / Joint Ventures proposing to set up a Silicon CMOS based Semiconductor Fab in India for manufacturing Logic / Memory / Digital ICs / Analog ICs / Mixed Signal ICs / SoCs

Tenure Icon

Tenure of the Scheme

Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.

Procedure to Apply

Applicant Details Icon

Applicant Details

Register and apply for the scheme through the application form section

Proposal Icon

Proposal

Detailed Project Report

Fee & Submission Icon

Fee & Submission

Application fee- 10 lakhs per application (Non-Refundable)

Approval Icon

Approval

Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.